Core office asset Energex House is being offered to the market for the first time and is tipped to sell for more than double its original value.
Cromwell Property Group developed the 30,563sq m campus-style development in 2010 as the sole asset for its Riverpark Trust. In 2016 shareholders voted to retain the asset, but the fixed-term syndicate is reaching maturity and shareholders have voted to sell in the hot market for a return of capital.
At the time of completion in 2010 the building was valued at $173 million—if it sells for more than $360 million it will have doubled in value in just over a decade.
The asset at 26 Reddacliff Street at Newstead was Queensland’s first 6-Star Green Star office building and is 92 per cent leased to power distributor Energex with a long-term lease through to August, 2030.
CBRE’s senior managing director for Queensland Bruce Baker is one of the marketing agents for the international expressions of interest campaign alongside Peter Chapple and Tom Phipps, and JLL’s Paul Noonan and Seb Turnbull.
Baker said the strong ESG values of the office building would attract solid interest from prospective buyers.
“There has been a clear uptick in investor appetite for quality Australian office assets with robust ESG credentials,” Baker said.
“In the case of Energex House, the building offers exceptional sustainability ratings and an anchor tenant that delivers essential community and social infrastructure and has made a significant investment into delivering high quality ESG outcomes to its customers and stakeholders.
“This includes a commitment to source 50 per cent of energy from renewables by 2030.”
The campus-style office building offers some of the biggest floorplates in Brisbane—about 4600sq m. It was one of the first commercial developments in the Newstead Riverpark area, an section of Brisbane tipped for continued growth and development ahead of the 2032 Olympic Games.
Cromwell Property Group has been buying up in Brisbane, acquiring 545 Queen Street for $117.5 million last year to add to its stable of office assets in the river city.
